Santos faces landmark greenwashing lawsuit from shareholder

In Australia, a significant legal case commenced on October 28, 2024, involving oil and gas company Santos. The Australasian Centre for Corporate Responsibility (ACCR), a shareholder group, initiated this unprecedented case, alleging that Santos’s assertions about its plans to achieve net zero emissions by 2040 are misleading. The ACCR claims Santos lacks a solid framework to support its emissions reduction goals and that its branding of natural gas as a 'clean fuel' misrepresents the environmental impacts. Over the course of a 13-day trial, various aspects of Santos's climate strategy will be examined, particularly its claims surrounding hydrogen production and the actual emissions produced. The ACCR's barrister argued that Santos's so-called 'climate plan' is a collection of unsubstantiated assumptions rather than a coherent strategy. Santos, which operates in multiple countries including Australia and the US, faces accusations of 'greenwashing' by suggesting it could help meet the Paris Agreement's targets by 2040. The company’s defense claims that investors understand the limitations of its roadmap and that achieving net zero will require significant advancements in technology. Furthermore, they argue that the target of net zero emissions is aspirational rather than a definitive promise. The trial not only aims to hold Santos accountable but also seeks to set a precedent for corporate responsibility regarding environmental commitments in Australia. The outcome may have lasting implications for how corporate sustainability claims are evaluated under Australian law.